Phasic Study On The Transition Of Taxation Model Of Personal Income Tax-about Labor Income

With the development of economy, the sources and forms of personal income become more and more diversified. However, the gap between the rich and the poor is expanding, so the defect of our personal tax system is becoming prominent. Although the personal income tax revenue is increasing and the proportion of tax revenue in the total tax is gradually increasing, the share of income tax is still too low, which leads to the fact that the function to adjust income distribution can not be fully played. Our current tax system is a dual structure of classified levy and comprehensive declaration.Although the current system is convenient for levying, the tax burden of the each partition differ from each other, especially, which have a similar labor quality. In this way, personal income tax is hard to play the role in adjusting income between people.Therefore, with the development of economy, the expansion of gap between the rich and the poor, the shortcomings of the classified tax system has become increasingly evident. It is the time to speed up the transformation from the classified income tax to a comprehensive tax system. This paper analyses the existing problems of China’s current personal income tax and states the concept of labor services and its scope. Then it makes a comparison of the problem of labor income and non labor income. In combination with the reality of China and the reference of foreign personal income tax model, the paper makes some suggestion in tax reform with the empirical and normative analysis of the individual income tax model.The core issue of this paper is the research on the transformation of the pattern of individual income tax from the four aspects which are the scope of taxation, the tax rate design, the design of the system and the matching tax management. First, it discusses the scope of the tax, and analyses the current tax rate table in empirical and normative method. Then this paper makes some suggestion about how to design a more reasonable tax rate, so that the individual income tax to better play a role in adjusting income between people. Moreover it designs a deduction table according to the reality of our income, so that the deduction is no longer uniform. Finally, the paper makes some reform proposals for the management measures.In the first chapter, the paper introduces the research background, literature review,research ideas and the framework of the article, innovation and deficiencies. In the second chapter, the author mentions theories about the models of personal income taxand states the concept of labor income and how to divide it, analyzes the existing problems of personal income tax in China, then analyzes and compares the problems of the labor income and the non labor income. In the third chapter, from the four aspects of the scope of taxation, tax rate design, the design of deduction, and the management measures which are matched with the tax reform, the paper analyses the existing problem pf each part.The four chapter it makes a reference of individual income tax in the United States, Japan, Brazil and India. In the fifth chapter, from the four aspects of the scope of taxation, tax rate design, the design of deduction, and the management measures which are matched with the tax reform, the paper makes some suggestion in tax reform with the empirical and normative analysis. At last, it is the summary.The innovation of this paper: first of all, this paper argues that the comprehensive part could include labor income of similar character. Then with the improvement of system and management, other income could be combined in the comprehensive part later. Secondly, this paper not only analyses the personal income tax of the developed countries, but also analyses the experience of the developing countries. Then, this paper studies the transformation of the model in labor income and makes specific design through empirical and normative analysis on the transformation of personal income.At the end of the paper, this paper makes a conclusion that the labor part should be combined with wages, salary income, labor remuneration, royalties income through analysis. Meanwhile, the paper suggests to expand the scope of taxation and reduce the loss of tax revenue. Then through the empirical analysis on the current tax rate table,this paper suggests it should reduce and smooth on the progressivity of the low-income and increase the progressivity of the high-income. What is more, it should reduce the number of tax rate, increase the income distance between each rate. In this way, it will make a better progressive function in the transition to a comprehensive taxation mode.Secondly, this paper argues that the same deduction is extremely unreasonable. The deduction should differ according to the actual situation of the taxpayer. Finally, this paper refers to some management measures of developed and developing countries, and puts forward some suggestions.